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“You can win ... you can grow … you can be one of the food industry’s great success stories,” was the positive message from Joanne Denney-Finch to producers at Quality Meat Scotland’s conference this week.

IGD’s research showed that farmers were viewed as hardworking, down to earth, professional and vital to the future, said chief executive Ms Denny-Finch.

“I find farmers are usually very pleasantly surprised to discover just how staunchly they’re supported by the public!”

But shoppers hunting harder for deals create complications for retailers and their suppliers, she warned. “Demand is going up and down in waves … sales are harder to predict and profit margins are regularly squeezed.

“Red meat has been relatively less affected and you’ve been spared some of these problems although you could lose out on sales. So if not through price cutting promotions … you will need to keep finding other ways to grab attention and convince shoppers of the value you offer.”

Sheep producers received a bigger share of the retail price for lamb in December 2011, but beef and pig farmers saw little change, according to AHDB’s latest UK Market Survey.

Strong export demand and tight supplies saw the average deadweight ex-farm price for lamb increase by 42p/kg in December compared with the month earlier. Over the same period the retail price declined slightly, so producers received almost 60% of the final retail price, up 6% on the month.

Overall during 2011 producers received 59% of the retail price, compared with 55% in 2010.

Beef producers received on average 54% of the final retail price during December, 1% down on the month, but 5% higher than December 2010. Pig producers saw a smaller improvement on the year (up 2%) and still receive a much lower share. The average ex-farm deadweight pig price equated to just 39% of the retail value in December.
 
 

Retail food inflation will fall below 2% by the second half of the year, predicts consultant EFFP. Lower general inflation, an improved global grain crop in 2011 and continued global economic weakness will all contribute to the reduction.

UK food inflation peaked in the summer of 2011 just above 7% but started to fall through the autumn and the latest official figures released in mid-December for November showed the rate at just under 5% year on year.

The ongoing supermarket price war means that a typical basket of food bought in the UK now costs around 5% less than the European average, according to the British Retail Consortium.

Shop price inflation is at its lowest level for a year and cheaper commodity prices, combined with continued retailer discounting and the Chancellor’s decision to postpone January’s 3p/litre rise in fuel duty will help keep inflationary pressure down, it said.

Overall food inflation fell to 4% in November, from 4.2% the previous month, while overall shop price inflation stood at 2%.

“With the OECD forecasting consumer spending to fall by 0.2% in the last quarter of 2011 and the first of 2012, retailers are likely to face a challenging start to the New Year,” the BRC said.

Dorset-based beef and lamb processor RWM Foods lost a major retail order just as the group was bought by ABP, it has emerged.

RWM said it was told of the cancellation of a “substantial order” for retail packed meat from a major multiple retail customer in the same week that the deal with ABP came into effect (9 October).

It did not reveal the name of the customer or why the business was lost but said the lost order represented over half the production at the Yetminster facility and consultation with staff at the site had begun.

“We intend to make a powerful case to reverse this decision, win back the business and prevent significant job losses,” a spokesman said. The lost order would have no effect on Blade Farming’s operations, he said.

Morrisons Traditional Breeds Beef Range hits the shelves this week, promoting quality cuts from native British cattle.

Two hundred farms have been producing Shorthorn, Hereford, Aberdeen Angus and finished stock from many other native breeds for the chain.
 
Consistently high eating quality in flavour and texture through marbling is the aim, with a special diet and 21 day maturing on the bone part of the plan. All of Morrisons’ fresh beef, lamb and pork is British.

Further evidence of shoppers’ desire for high animal welfare standards when buying meat has been produced by those busy researchers at the Institute of Grocery Distribution.

Its latest survey suggests that 81% of meat shoppers are attracted by higher animal welfare standards and almost two-thirds (63%) buy Freedom Food products because of its association with the RSPCA.

Sainsbury’s, which claims to be the UK's largest retailer of Freedom Food branded lines, says sales of Freedom Food eggs, pork, chicken, turkey and ham have gone up by almost 10% over the past year alone. This month it will also be the first UK supermarket to introduce Freedom Food canned ham in a new cold canned meats range.

“This news reinforces the fact that people really do care about farm animals but with an increasing number of different food labels on offer, it can be confusing to know what to choose,” said Leigh Grant, chief executive of Freedom Food.

Robert Wiseman Dairies has warned its retail customers that it will have to pass on higher costs.

The firm, which has already announced it will raise its farmgate price by 1.85p/litre from 1 October in order to secure supplies, said it was in discussions with customers over how to recover the higher costs for raw milk, packaging and fuel. The cost of diesel and resin used to make its plastic bottles had increased by 15% in the past half year, a pre-close trading update said.

But while costs were up, Wiseman said sales volumes had increased through additional supplies to The Co-operative Group and was confident that results for the six months to 1 October 2011 would be “in line with expectations”.

The interim results will be announced on 14 November.

Promoting the nutritional benefits of milk to consumers is the main aim of a new website that has been launched by Tesco.

The site, www.tescomilk.com, also aims to inform shoppers about the wider dairy industry and features the work of the Tesco Sustainable Dairy Group. It includes a video showing the journey from “farm to fridge”, with details on milking, transportation, quality assurances, environmental and welfare practices.

There is also information on Tesco’s Dairy Centre of Excellence at Liverpool University, milk prices paid to farmers, profiles of TSDG suppliers, recipes and a blog from a farmer’s daughter.

Dairy Crest says trading in the first quarter of this year has “been in line with expectations”, despite an “increasingly tough trading environment”.

An interim management statement announced at the company’s AGM today (19 July) said total sales if its five key brands (Cathedral City, Country Life, Clover, St Hubert Omega 3 and Frijj) were up 5% on the same time last year and its dairies business had benefitted from higher than anticipated cream prices.

But, DC said strong competition in retail milk markets had reduced residential milk sales and input costs had also increased significantly.

“By focusing on our brands and by becoming more efficient we are dealing with those challenges and are soundly placed for the rest of the year,” Mark Allen, Chief executive, said.